Senate File 2110 - IntroducedA Bill ForAn Act 1relating to acreage limitations for the production of
2hemp, and including effective date provisions.
1   Section 1.  Section 204.2, subsection 5, Code 2022, is
2amended to read as follows:
   35.  “Crop site” or “site” means a single contiguous parcel
4of agricultural land suitable for the planting, growing, or
5harvesting of hemp, if the parcel does not exceed forty acres.
6   Sec. 2.  Section 204.4, subsection 6, Code 2022, is amended
7to read as follows:
   86.  A person may hold any number of licenses at the same
9time. However, the person shall not hold a legal or equitable
10interest in a licensed crop site, if the total number of acres
11of all licensed crop sites in which the person holds all such
12interests equals more than forty acres.

13   Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate
14importance, takes effect upon enactment.
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
   18ACREAGE LIMITATION — EXCEPTION. This bill amends Code
19chapter 204, the Iowa Hemp Act (IHA), which in part requires
20the department of agriculture and land stewardship (DALS) to
21regulate the production of hemp. Hemp is defined as a species
22of cannabis (sativa L.)having a maximum concentration of
23delta-9 tetrahydrocannabinol that does not exceed three-tenths
24of 1 percent on a dry weight basis (Code section 204.2). DALS
25is required to establish and administer a process to issue
26and renew one-year hemp licenses to qualified producers (Code
27section 204.4). DALS may issue any number of licenses to a
28qualified producer so long as all licensed crop sites do not
29exceed a total of 40 acres. Until June 30, 2022, a qualified
30producer is subject to an interim license fee based on the
31size of the licensed crop site, equaling not more than a base
32amount plus $5 per acre. The base amount is $500 for a licensed
33crop site that is five acres or less; $750 for a licensed crop
34site that is more than five acres but not more than 10 acres;
35and $1,000 for each licensed crop site that is more than 10
-1-1acres. During the interim period, the producer is also subject
2to an annual base inspection and official test fee of not more
3than $1,000. On and after June 30, 2022, permanent license
4and inspection fees are established by rules adopted by DALS
5for each 12-month period based on the costs of administering
6and enforcing the IHA which may be based on the size of a
7licensed crop site (Code section 204.5). The bill eliminates
8the requirements that (1) a licensed crop site must be 40 acres
9or less and (2) the total number of acres of all licensed crop
10sites must be 40 acres or less.
   11BACKGROUND. The IHA must comply with the relevant sections
12of the federal Agriculture Improvement Act of 2018, Pub.L.
13No.115-334, that allows states and tribes to assume primary
14regulatory authority over the production of hemp by submitting
15a plan for approval by the United States department of
16agriculture (USDA). Effective April 8, 2020, the secretary of
17agriculture published an advisory notice that the state plan
18for the production of hemp was certified by the United States
19department of agriculture in IAB Vol.XLII, No.21 (4/8/20),
   21EFFECTIVE DATE. The bill takes effect upon enactment.